Choosing your Home Care Package Provider is one of the most important decisions you will make in your life. It can be hard to wrap your head around how a Home Care Package works with all the various fees and processes, let alone the hidden fees that many Providers don’t want you to know about.
There’s a lot that traditional Providers won’t tell you straight up, so we thought we’d unveil the 7 hidden fees that Providers don’t want you to ask and how this may impact your choice of Provider. Get ready to feel empowered with knowledge!!
Some providers charge a Set-Up Fee when you sign up with them. A set-up fee reduces the amount of funds leftover for care services. Paying this fee can also make clients reluctant to change Providers if they’re not happy, as many clients worry that they may have to pay another set-up fee with the new Provider.
Providers are legally allowed to charge you an exit fee if you decide to change Providers. This will impact the amount of funds you have leftover for care services with a new Provider. This fee can be anywhere from $200 to $5,000. At Just Home Care Packages, we don’t charge this fee. Many Providers will charge this fee to deter you from switching. We always say you should ask Providers why it is necessary to charge this if they think they’re doing a good job.
Case Management/Administration Fees
Case management and administration fees can greatly reduce the amount of funds you have available for care services. Some Providers even charge up to 50% of your Home Care Package funds just for case management alone. Before signing on with a Provider, it is important to clarify exactly how much of your Home Care Package will be used for this fee.
Daily Care Fee
Many Providers will tell you that it’s a requirement to pay a daily care fee (also known as a basic daily fee or daily contribution fee) and contribute extra funding to your Home Care Package. This is not a fee required by My Aged Care. Providers decide independently whether or not to charge their clients this fee. It is determined by a percentage of your pension and your package level.
The Daily Care Fee as of March 2021 per Home Care Package level is:
|Package level||Daily fee||Annual fee|
There is no reason for any Home Care Package holder to pay a daily fee as you can always pay for more services if and when you need them.
Care Service Providers Fees /Care Worker Fees
Many Providers have hidden fees built into their carer’s and service provider’s hourly rates, which is why they require you to use only their staff. Make sure to compare the hourly rates from a Provider to market rates. For example, a Provider may charge you $65/Hr for cleaning while market rates for the same service could be$35/Hr. By getting a better rate, you are leaving more funds available in your package for other care services.
Surcharge for using care staff not employed by the Provider
Some Providers add an extra fee, known as a surcharge when a client uses their own chosen care service provider. Many Providers rely on you using their in-house staff at inflated rates. The surcharge is a way for Providers to recover lost revenue when clients don’t use their staff.
Income Tested Fee
The Income Tested Fee is assessed and charged by the government. If you are required to pay this fee, you will need to do so regardless of which Provider you choose.
To find out if you’re eligible to pay the Income Tested Fee you can use the fee estimator tool on the My Aged Care website: https://www.myagedcare.gov.au/how-much-will-i-pay
At Just Home Care Packages, we make sure everyone is aware of all the different fees they might encounter when agreeing to a Home Care Package Provider. We have no hidden fees and believe in full transparency. Give us a call to find out how Home Care Package with Just Home Care Packages works. Call us now on 1300 992 639 and speak to one of our friendly Care Expert’s today.